EFFICIENCY OF PPP IMPLEMENTATION IN BOSNIA AND HERZEGOVINA

Abstract

Bosnia and Herzegovina is among the
countries whose social and economic development needs
greatly exceed financial capacities of the public sector.
Implementation and financing of capital projects of public
importance such as: highways and road infrastructure
(bridges, tunnels), railway lines, ports, airports, gas
pipelines, refineries, power generation plants, social and
municipal infrastructure (hospitals, schools, prisons, water
supply network, waste disposal) often lead to significant
fiscal constraints. Financing investments in the context of
limited budget capacities requires a new approach and
strategy. In a situation where public sector in Bosnia and
Herzegovina does not have enough resources necessary for
the efficient implementation of capital projects, there is a
need for engaging private capital. Public-private
partnership, although a relatively new form of financing,
opens significantly more opportunities for financing
development, providing public services and meeting citizen’s
needs, which will be the subject of this paper.